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Suppose a manufacturing firm dumps its waste into the river, causing pollution downstream where residents like to water ski and fish. The marginal external cost to the residents is $800 for their diminished recreational enjoyment. The marginal benefit to the firm of dumping the waste is $500, the amount of money they save by not having to haul the waste away.
What is the efficient solution for society: for the firms to have the right to dump the waste, or for the residents to have the right to clean water? Tell 2 stories about how the efficient outcome would be negotiated between both parties, regardless of who ultimately is awarded the property rights.
a finn purchased some equipment at a price of $30000, the resulted in an annual net saving of $1000 per year during the 8 year period. at the end of the 8th year, the equipment was sold for $40000. assuming interest of 8%. did the equipment purcha..
Finds in a simple regression analysis which demand increases with an increase in advertising also falls as advertising expenditures are reduced.
Determine the profit of the Restaurant. If the company were to produce as a perfectly competitive firm, how much would it produce?
A proposal has been made for improving the downtown area of a small town. The plan calls for banning vehicular traffic on the main street and turning this street into a pedestrian mall with tree plantings and other beautification features.
In a local shoe factory, machinery used is outdated and takes too much labor time to make a pair of shoes. Inexpensive imports are flooding the market and it is increasingly hard to compete with imported shoes on price. Briefly discuss steps the mana..
Which one of these best describes a factor market? Who is the merchant/seller in a factor market?
In 2012, Peter Pan’s Pizza Pizzeria produced and sold 10,000 pizzas at a price of $8 each. In 2013,Peter Pan’s Pizza Pizzeria produced and sold 12,000 pizzas at a price of $9 each. How much did Peter Pan’s Pizza Pizzeria contribute to nominal GDP (in..
Illustrate what might cause the world interest rate to rise.
If the demand for used cars decreases after the price of a new car fallls, used cars and new cars are
was low at a point and time in past human capital is also relevant never ever use selection bias! Equipment is it investment or is it technological change.
The population of Ectenia is 100 people: 40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so discouraged they have given up looking, 10 are not interested in working beca..
When the Fed buys government bonds,
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